Business Segments

9 Months Ended

Mar. 31, 2019

11. Business Segments

We evaluate performance and allocate resources based on the Animal Health, Mineral Nutrition and Performance Products segments. Certain of our costs and assets are not directly attributable to these segments and we refer to these items as Corporate. We do not allocate Corporate costs or assets to the segments because they are not used to evaluate the segments’ operating results or financial position. Corporate costs include certain costs related to executive management, business technology, legal, finance, human resources and business development. Corporate assets include cash and cash equivalents, certain debt issue costs, income tax related assets and certain other assets.

We evaluate performance of our segments based on Adjusted EBITDA. We define Adjusted EBITDA as income before income taxes plus (a) interest expense, net, (b) depreciation and amortization, (c) (income) loss from, and disposal of, discontinued operations, (d) other expense or less other income, as separately reported on our consolidated statements of operations, including foreign currency gains and losses and loss on extinguishment of debt, and (e) certain items that we consider to be unusual, non-operational or non-recurring.

The accounting policies of our segments are the same as those described in the summary of significant accounting policies included herein.

	Three Months						Nine Months
For the Periods Ended March 31	2019			2018			2019			2018
Net sales
Animal Health		$	129,189		$	132,310		$	399,940		$	393,996
Mineral Nutrition			60,653			62,938			177,810			174,627
Performance Products			15,894			13,660			46,362			39,573
Total segments		$	205,736		$	208,908		$	624,112		$	608,196
Depreciation and amortization
Animal Health		$	5,571		$	5,359		$	16,420		$	15,878
Mineral Nutrition			592			584			1,805			1,753
Performance Products			273			277			825			782
Total segments		$	6,436		$	6,220		$	19,050		$	18,413
Adjusted EBITDA
Animal Health		$	33,241		$	36,292		$	104,882		$	105,070
Mineral Nutrition			5,287			5,375			11,934			14,705
Performance Products			1,330			386			3,560			898
Total segments		$	39,858		$	42,053		$	120,376		$	120,673

	Three Months						Nine Months
For the Periods Ended March 31	2019			2018			2019			2018
Reconciliation of income before income taxes to Adjusted EBITDA
Income before income taxes		$	19,515		$	24,388		$	62,294		$	64,543
Interest expense, net			2,931			3,064			8,729			9,232
Depreciation and amortization – Total segments			6,436			6,220			19,050			18,413
Depreciation and amortization – Corporate			439			531			1,357			1,613
Corporate costs			9,850			8,650			28,654			24,675
Stock-based compensation			565			—			1,694			—
Acquisition-related cost of goods sold			—			—			—			1,671
Acquisition-related accrued compensation			—			160			—			1,084
Acquisition-related transaction costs			—			—			—			400
Foreign currency (gains) losses, net			122			(960)			104			(958)
Other			—			—			(1,506)			—
Adjusted EBITDA – Total segments		$	39,858		$	42,053		$	120,376		$	120,673

As of	March 31, 2019			June 30, 2018
Identifiable assets
Animal Health		$	487,815		$	455,704
Mineral Nutrition			72,373			69,779
Performance Products			30,682			24,040
Total segments			590,870			549,523
Corporate			115,550			122,156
Total		$	706,420		$	671,679

The Animal Health segment includes all goodwill of the Company. The Animal Health segment includes advances to and investment in an equity method investee of $3,222 and $3,432 as of March 31, 2019 and June 30, 2018, respectively. The Performance Products segment includes an investment in an equity method investee of $706 and $437 as of March 31, 2019 and June 30, 2018, respectively. Corporate assets include cash and cash equivalents, short-term investments, certain debt issuance costs, income tax related assets and certain other assets.